ASSOCIATION OF GHANA INDUSTRIES Presentation by: Mrs Nora Bannerman-Abbott (National Executive Committee Member, AGI)

About Ghana Africa’s Golden Gateway to a Safe and Stable Investment Destination Most peaceful nation in West Africa with population of about 26million Boasts of diverse and abundant Natural Resources Ghana

OVER-VIEW OF ECONOMY- GHANA’S INVESTOR-FRIENDLY ENVIRONMENT Country has witnessed six peaceful elections since 1992 Continuous, stable multi-party political environment since 1992 Competitive corporate tax rates in the sub region Fast developing financial infrastructure, institutions and services Abundant supply of skilled and trainable labour Proximity to both the European and American markets

AGI, who we are AGI, the leading voice of the private sector in Ghana. Established as a not for profit private sector organization. Speaks for 1500 member companies in Gh. KEY MILESTONES 1958 Formed as Federation of Ghana Industries by 10 indigenous industrialists Founding president: The late Dr. Esther Ocloo 1961 Membership extended to non-Ghanaian industrialists. Change of name to Ghana Manufacturers Association 1984 Service industry invited to join. Change of name to Association of Ghana Industries (AGI) th Anniversary-Further evaluation of performance, amendment of AGI Regulations and developing a strategic plan to guide our operations for next 5yrs

Key services Policy Advocacy To lower cost of doing business, ensure sustainable growth and improved business climate to enhance competitiveness Business Development Services Business development support services for our SMEs such as business plans preparation, business advisory services etc. Business Networking Creating the platform for businesses to interact and exchange business ideas

Diversity of AGI sectors Advertising Agri-Business Automotive & Transport Services Chemicals Energy Electricals & Electronics Food Beverages Financial Services Garments, Textile & Leather Hospitalities & Industry Information & Communication Technology Metals, Building & Construction Products Oil and Gas Services Business Promotion & Consultancy services Pharmaceuticals Printing, Stationery & Packaging Rubber & Plastics Toiletries & Cosmetics Wood Processing Associates

KEY PRIORITY SECTORS FOR INVESTMENT IN GHANA  Energy  Infrastructure  Agric and Agric-business  Manufacturing and Industry  Tourism  Information Communication &Technology  Financial Services

Key areas for investment-AGI’s perspective Infrastructure  Energy Total peak demand- 2,100 MW Available generation capacity hardly meets total peak demand Renewable energy Act 832- Act promotes local manufacture of components to facilitate the rapid growth of renewable energy sources and also recommends for exemption from customs levies/duties on equipment & machinery necessary for the development, production and utilization of renewable energy sources. Apart from Ghana’s legacy hydro which is shrinking, only 2MW solar plant has been added at Navrongo.  Road & Railway network Roads leading to key areas of economic activity lacking  Housing (about 1.7million housing deficit) 

INFRASTRUCTURE Roads Public Housing And Property Development Rail Transport And Ports

PORT INFRASTRUCTURE- CONTAINER TERMINAL, TEMA PORT

TOURISM Tourist attractions Tourist accommodation – (hotel resorts, business hotels, Lodges/inns, hostels,camping sites) Tourist Information Shops Tourist Transport/Travel Services Food and Beverage Services Entertainment Leisure/ Sports Shopping Meeting Facilities KINTAMPO WATERFALLS

Key areas for investment-AGI’s perspective  Agro-processing, Agric. employs majority of population, yet contributes the least to GDP. Need for value-addition Agric. (20.3%) Industry ( 25.3%) and Services (54.41%) for 2015  Manufacturing (Electricals, pharmaceuticals, textiles/garments) Need for expansion of pharmaceutical supply chains Need for modern facilities for drug & medical tests Textiles & Garment employs significant number  Food processing (F &B sector contributes significantly to GDP)

Agric. declining

Key challenges for growth of businesses Availability & reliability of power supply Electricity drives economic activity including manufacturing, yet supply remains cyclical problem. Manufacturing-subsector grew by -0.5%, -0.8% & 2.2% in 2013, 2014 and 2015 respectively Unstable macro-economic situation Weak local currency & heavily import-dependent economy. About $600million rice imported annually. Opportunity exists for export development under the National Export Strategy Lack of medium to long-term facility for Industry. Needed for expansion, retooling etc

Key challenges contd.  Access to Credit / Capital  Cost of Credit / Capital  Influx of Imports (competition) 70% of foods/goods in markets imported  Infrastructure deficit  Multiplicity taxes  Special Levies (2% on all imports, except petroleum products)

Opportunities available in local partnerships PPP to deliver huge infrastructure projects as supported by the National Policy on PPP Easy access to office space/ land Availability of labour Access to ECOWAS market In-depth knowledge of the local market Strong networking opportunities

Expectations of local partner Technology transfer State of the art equipment Best business practices Transparency in business dealings & vice versa Partnerships that enhance competitiveness Funding Market development opportunities

Garment factory

Contact The C.E.O Association of Ghana Industries 2nd Floor, Addison House Trade Fair Centre, La, Accra P. O. Box AN-8624, Accra North, Ghana Phone: /4 Website: THANK YOU!!!